American Express Foreign Transaction Fee?
Q: What is the foreign transaction fee on American Express cards? I will be traveling internationally more and would like to minimize or avoid this fee if at all possible.
A: If you travel internationally, you definitely have to keep an eye on those credit card foreign transaction fees. They can vary greatly depending upon who issues the card.
The standard American Express foreign transaction fee is 2.7% and here’s how it compares to other major issuers in 2013, arranged from least expensive to most expensive:
- Capital One – none
- Discover – none
- American Express – 2.7% fee (except for the $450 Platinum Card which has no fee)
- Chase – 3% fee
- Citi – 3% fee
- Bank of America/FIA Card Services – 3% fee
- Barclaycard/Juniper – 3% fee
- HSBC – 3% fee
- Wells Fargo – 3% fee
- US Bank – 3% fee
As you can see, the American Express fee is slightly lower than average. If you only travel internationally once a year it’s probably not worth hassling with another credit card. However if travel abroad on a frequent basis, then chucking over those 2-3% fees will add up fast. Think about… spending $10,000 per year would mean $270 in currency fees.
The good news is there are several cards that charge no foreign transaction fees whatsoever. Go here to see the current list of cards with no currency fees. If you want one that has no annual fee this is the best choice:
Discover does not have a foreign transaction fee. Per their site FAQ:
“Will I be charged a transaction fee when I make a purchase in a foreign currency using my Discover Card?
No, Discover does not charge a foreign currency transaction fee.”
Amex started this about 2 years ago. It is BS! They already get a fee of 4-8% from the vendor you are buying that product or service from. Guess they put the ‘fee’ in place for just one reason BECAUSE THEY COULD!!! Funny that they do not charge it on the wife’s Corporate Gold Card….
Wrong… It’s between 2.3-3.5%.
I would disagree with Brian. Sure, you as a consumer have the obligation to do your homework and know about the card in advance — which may include reading the credit card agreement. But businesses also have an ethical obligation to do “good” business — such as providing a “plain english” summary of pertinent contract language, not charging exorbitant fees and using “weasel language” to increase the scope of the fees.
@Brian – at least I read the credit card agreement. American Express issued Amex cards used to charge this fee only when there was an actual foreign currency conversion until about one or two years ago. Ever since the Visa and MasterCard associations changed from “foreign currency conversion” fees to “foreign transaction” fee, it seems like American Express did this over the last year or two and now people are getting surprise charges when they buy USD tickets online for Legoland California just because the park operator is British.
Some other options to minimize or eliminate this fee include are Fidelity Amex Rewards issued by FIA Card Services – 1% on foreign currency conversions only and Discover Card (0%) if accepted and Capital One.
FIA is Bank of America – it is the name given when they acquired MBNA
Capitol One does not charge a foreign transaction fee.
AmEx is lame…will try Capital One
Got to love these guys. Just got back from a trip and had these fees on my statement. Credit union here I come.
This fee is BS. What a greedy grab by Amex. Canceled my card today because of it.
Don’t you read the credit card agreement before signing up for a card? Let alone use a card. Foreign trans. fees are clearly stipulated in each credit agreement. Why did you sign up if you were unwilling to pay a price for convenience? Not to forget ding your credit score a bit. Amex is by far the best card one can have.